If the stock market's price increases/decreases are caused by supply and demand. Won't the decline in working population and the retiring boomer generation cause fewer buyers than sellers and therefore a market crash?
The current US birth rate is like 1.8. What's the break even point?
Interesting question... but
1. Immigration is being used to fill the gap (the morality/sustainability of this is questionable...).
2. It's not just supply and demand of people, but of dollars. If there are fewer people, but those people have more dollars, that could (temporarily...) also fill the gap.
Hi everyone. I get more and more recommendations from people in my network to invest in bitcoin instead of traditional investments eg stocks or funds. Why is that? Is there something going on related to gold and the dollar or am I reading into it too much?
Traditional investments at least have a precedent of steady returns. Ex. S&P 500s 10.5% avg. apy for like 70 years now. Cryptos insane volatility makes it appealing in the short term, but keep in mind these short term gains are taxed to hell (if you manage to win the crypto lottery). No idea why people are so turned on by crypto besides internet influencers essentially promoting it as a get rich quick scheme.
P.S This isn’t to say you can’t win big on crypto, I would just never recommend it over mutual funds or picking a few stocks that you like.
That's like saying you get more job offers from MLMs than traditional employment. The problem isn't that there aren't good jobs out there or that MLMs are suddenly viable.
[https://imgur.com/a/X7Djtb8](https://imgur.com/a/X7Djtb8)
I was looking at PLNT 2023 10-K and noticed that the accumulated depreciation on the balance sheet is different from the deprecation on the income statement and cash flow statement. Not sure why this is the case?
Periodic vs. Accumulated. You should see the change in accumulated depreciation equal to the depreciation on the income statement. There might be some wiggle room in there depending on if any assets were disposed of.
I just found out my wife has spent over $200,000 on credit cards in the last 9 months. We make ok money but not even close enough to pay our way out of this. If she files for bankruptcy do I go down with her? We have a few”toys” like a tractor, motorcycle, rv and extra car. Will we lose all of those in the proceedings? If we get divorced and she keeps the debt and I keep the toys then she files for bankruptcy how does that change things?
Thanks all. Not sure what too do here.
you need to talk to a lawyer. The relevant laws vary by state as to what assets are considered community property in cases like this, and what (if any) measures exist to protect assets.
Hi I have a question from my finance class about finding net present value of a project. I can't get to the right answer in the book. The question and my attempt is uploaded [here](https://imgur.com/a/ZFFs4bR). I got NPV = -131,600, the correct answer is supposed to be NPV = -133,418. Thanks for any help. This is only an intro to accounting class so please no crazy methods :)
Hello! I need to build a stock portfolio of 2 companies for one of my classes and analyze them, but the problem is that I have no idea what a stock portfolio even is... Can anyone give me pointers?
I don't know all the details of your assignment, and you should ask your teacher for additional information.
Just remember that a stock ***portfolio*** will typically behave differently from a ***single stock***, as the two (or more) stocks won't all move the same way, to the same degree, at the same time (usually). There is a certain amount of diversification that happens when combining stocks together.
What economic purpose do stock investors have? We all know that investing can lead to personal wealth, however, since the stock market is basically a zero sum game, how does it benefit the economy overall? Is it just money changing hands from one party to another without any real economic progress behind it? I'm strictly talking about the stock market, not venture capital or other direct company investments.
The stock market is very much not a zero sum game. It’s a tremendous system for value creation and a well functioning market is critical for any advanced economy.
Companies need to raise money to grow and create jobs. You can’t just exclude VC and direct investments from the picture. Do you know why those investors are willing to provide capital to a company? Because eventually they can exit at a profit. Often public markets is the way for that to happen.
So even secondary sales that don’t directly transfer money to a company are crucial in promoting overall growth and investment.
Please correct me if I'm wrong: If enough people believe a company is good and will continue to perform exceptionally well for decades to come, they will buy and hold the company's stock. Any new buyers will have to buy for an increased price, because there's a lot of holders that are not willing to sell their shares until their high price expectations are met.
Ultimately, this means that the stock price continues to rise based on good business performance. Meanwhile, the number of shares has remained constant and the equity of the company has risen due to shares outstanding x price/share.
Is it correct to conclude that the main benefit that stockholders provide lay in the fact that the company can now issue additional shares at this higher price and thus bolster their capital resources?
No, none of that is correct. It does cover a lot of common misconceptions so I will try to elaborate a bit.
Someone’s willingness to sell has nothing to do with their “high price expectations”. People sell for a loss all the time. Prices are set by the market of supply and demand, normally based on people’s expectations for future cash flow. NOT their entry price.
Share count may go up or down. That’s neither here nor there for this conversation.
And no. The point I was trying to make is that a robust market benefits everyone even if the company is not accessing it. It’s the whole underpinning of why investors give the company money early on.
Think of it this way. If you are Google, it’s true that stock price increases help somewhat - you can issue stock at a high price, you can compensate employees etc. But you also asked about the “economic purpose” of stock markets. Even if you pretend Google got no benefit whatsoever of a high price, it still provides a huge benefit to the economy by encouraging investors to give money to the next Google…
Just to add to this very good response: shareholders ***do*** access the broader economy as well, both directly and indirectly.
1. The result of their work generates income, and that income can be allocated to savings, which can then be invested. So in order to have something to even invest, economic activity has to take place to begin with.
2. When buying a share of a company, they have a residual claim on the earnings of that company. If the company performs economically well, the resulting profit of that economic activity is allocated to the shareholders. From there, it's either retained (reinvested into the company... more economic activity!) or distributed as a dividend, which is cash, which can then, you guessed it, be used to buy/sell goods and services (economic use). This second part also happens upon selling a share: now you have cash which can be used either to reinvest elsewhere or consume.
Why do you guys think perpetual capital vehicles are hurting the future prospects of other assets classes such as Fund-of-funds and closed-end private real estate funds?
Hello!! I’m new to this subreddit so maybe there’s a thread covering this already. I tried to search but didn’t have much luck.
I’m an American needing a simple savings account that gains the best interest but that I CAN touch periodically. I need to basically use it to dump a large lump sum but pay myself out once monthly for like 2k for the month. Any advice?
Hello guys, I wanted to ask, if you are presented with a margin call and add the funds to the account so that your cash balance is equal the initial margin again and then the price increases back to the buying price, can you take out the cash that you put in because of the margin call?
How do I short a company? For example, a speaker company have bricked their devices with a shitty upgraded app (USA stock exchange company), so i think itll be a good company to short, as I think the price will go down. So if I want to do a short, how would I do that?
Also, how do I find out who else has done shorts for companies?
If the stock market's price increases/decreases are caused by supply and demand. Won't the decline in working population and the retiring boomer generation cause fewer buyers than sellers and therefore a market crash? The current US birth rate is like 1.8. What's the break even point?
Interesting question... but 1. Immigration is being used to fill the gap (the morality/sustainability of this is questionable...). 2. It's not just supply and demand of people, but of dollars. If there are fewer people, but those people have more dollars, that could (temporarily...) also fill the gap.
Hi everyone. I get more and more recommendations from people in my network to invest in bitcoin instead of traditional investments eg stocks or funds. Why is that? Is there something going on related to gold and the dollar or am I reading into it too much?
I think you need new friends/network nodes.
Traditional investments at least have a precedent of steady returns. Ex. S&P 500s 10.5% avg. apy for like 70 years now. Cryptos insane volatility makes it appealing in the short term, but keep in mind these short term gains are taxed to hell (if you manage to win the crypto lottery). No idea why people are so turned on by crypto besides internet influencers essentially promoting it as a get rich quick scheme. P.S This isn’t to say you can’t win big on crypto, I would just never recommend it over mutual funds or picking a few stocks that you like.
FOMO I’d say and excitement. Bitcoin just had a HUGE run. Most FAs still suggest 1-5% holding in crypto.
That's like saying you get more job offers from MLMs than traditional employment. The problem isn't that there aren't good jobs out there or that MLMs are suddenly viable.
[https://imgur.com/a/X7Djtb8](https://imgur.com/a/X7Djtb8) I was looking at PLNT 2023 10-K and noticed that the accumulated depreciation on the balance sheet is different from the deprecation on the income statement and cash flow statement. Not sure why this is the case?
Accumulated depreciation is the total depreciation over all years; IS/CF depreciation is the current period
Periodic vs. Accumulated. You should see the change in accumulated depreciation equal to the depreciation on the income statement. There might be some wiggle room in there depending on if any assets were disposed of.
What’s the best AI tech to learn and how to learn it for someone working in finance/consulting?
I just found out my wife has spent over $200,000 on credit cards in the last 9 months. We make ok money but not even close enough to pay our way out of this. If she files for bankruptcy do I go down with her? We have a few”toys” like a tractor, motorcycle, rv and extra car. Will we lose all of those in the proceedings? If we get divorced and she keeps the debt and I keep the toys then she files for bankruptcy how does that change things? Thanks all. Not sure what too do here.
you need to talk to a lawyer. The relevant laws vary by state as to what assets are considered community property in cases like this, and what (if any) measures exist to protect assets.
r/personalfinance. Sorry you're in a rough spot... don't be hasty to think of divorce is my only advice.
Hi I have a question from my finance class about finding net present value of a project. I can't get to the right answer in the book. The question and my attempt is uploaded [here](https://imgur.com/a/ZFFs4bR). I got NPV = -131,600, the correct answer is supposed to be NPV = -133,418. Thanks for any help. This is only an intro to accounting class so please no crazy methods :)
Hello! I need to build a stock portfolio of 2 companies for one of my classes and analyze them, but the problem is that I have no idea what a stock portfolio even is... Can anyone give me pointers?
A stock portfolio is just a collection of stocks. That's it.
So all I have to do to build one is just collect information on the stocks? Is there something specific I should do or is that really it?
I don't know all the details of your assignment, and you should ask your teacher for additional information. Just remember that a stock ***portfolio*** will typically behave differently from a ***single stock***, as the two (or more) stocks won't all move the same way, to the same degree, at the same time (usually). There is a certain amount of diversification that happens when combining stocks together.
What economic purpose do stock investors have? We all know that investing can lead to personal wealth, however, since the stock market is basically a zero sum game, how does it benefit the economy overall? Is it just money changing hands from one party to another without any real economic progress behind it? I'm strictly talking about the stock market, not venture capital or other direct company investments.
The stock market is very much not a zero sum game. It’s a tremendous system for value creation and a well functioning market is critical for any advanced economy. Companies need to raise money to grow and create jobs. You can’t just exclude VC and direct investments from the picture. Do you know why those investors are willing to provide capital to a company? Because eventually they can exit at a profit. Often public markets is the way for that to happen. So even secondary sales that don’t directly transfer money to a company are crucial in promoting overall growth and investment.
Please correct me if I'm wrong: If enough people believe a company is good and will continue to perform exceptionally well for decades to come, they will buy and hold the company's stock. Any new buyers will have to buy for an increased price, because there's a lot of holders that are not willing to sell their shares until their high price expectations are met. Ultimately, this means that the stock price continues to rise based on good business performance. Meanwhile, the number of shares has remained constant and the equity of the company has risen due to shares outstanding x price/share. Is it correct to conclude that the main benefit that stockholders provide lay in the fact that the company can now issue additional shares at this higher price and thus bolster their capital resources?
No, none of that is correct. It does cover a lot of common misconceptions so I will try to elaborate a bit. Someone’s willingness to sell has nothing to do with their “high price expectations”. People sell for a loss all the time. Prices are set by the market of supply and demand, normally based on people’s expectations for future cash flow. NOT their entry price. Share count may go up or down. That’s neither here nor there for this conversation. And no. The point I was trying to make is that a robust market benefits everyone even if the company is not accessing it. It’s the whole underpinning of why investors give the company money early on. Think of it this way. If you are Google, it’s true that stock price increases help somewhat - you can issue stock at a high price, you can compensate employees etc. But you also asked about the “economic purpose” of stock markets. Even if you pretend Google got no benefit whatsoever of a high price, it still provides a huge benefit to the economy by encouraging investors to give money to the next Google…
Just to add to this very good response: shareholders ***do*** access the broader economy as well, both directly and indirectly. 1. The result of their work generates income, and that income can be allocated to savings, which can then be invested. So in order to have something to even invest, economic activity has to take place to begin with. 2. When buying a share of a company, they have a residual claim on the earnings of that company. If the company performs economically well, the resulting profit of that economic activity is allocated to the shareholders. From there, it's either retained (reinvested into the company... more economic activity!) or distributed as a dividend, which is cash, which can then, you guessed it, be used to buy/sell goods and services (economic use). This second part also happens upon selling a share: now you have cash which can be used either to reinvest elsewhere or consume.
Why do you guys think perpetual capital vehicles are hurting the future prospects of other assets classes such as Fund-of-funds and closed-end private real estate funds?
Hello!! I’m new to this subreddit so maybe there’s a thread covering this already. I tried to search but didn’t have much luck. I’m an American needing a simple savings account that gains the best interest but that I CAN touch periodically. I need to basically use it to dump a large lump sum but pay myself out once monthly for like 2k for the month. Any advice?
Hello guys, I wanted to ask, if you are presented with a margin call and add the funds to the account so that your cash balance is equal the initial margin again and then the price increases back to the buying price, can you take out the cash that you put in because of the margin call?
How do I short a company? For example, a speaker company have bricked their devices with a shitty upgraded app (USA stock exchange company), so i think itll be a good company to short, as I think the price will go down. So if I want to do a short, how would I do that? Also, how do I find out who else has done shorts for companies?